I just read this thread. I'm of the mind-set to be in the group who is paying $0.20 on the $1.00 to acquire well located courses in financial distress due to mismanagement, overspending, or aging membership. The next 36-48 months will provide tremendous opportunites for those with a war chest to acquire golf assets at a price where revenues will exceed expenses, thus generating a positive return on the investment.
Earlier, someone opined a 4% return was not a bad return, but is that return worth the risk involved? Probably not, but a return of 8-10%% (12.5%-10.0% CAP Rate) in today's investing environemnt just may attract investors. Someone earleir also supplied a thumbnail pro-forma, with an asset generating free cash of $400,000/annum on $2,000,000 in revenue. $400,000 of free cash to distribute each year to investors would make most of us very happy, even in the better times.
Great discussion.....keep it going.